The Banking System Is Able to Make New Loans Equal

question 129

Multiple Choice

The banking system is able to make new loans equal to

• A) total legal reserves of the system.
• B) total excess reserves of the system.
• C) total required reserves of the system.
• D) a multiple of total excess reserves of the system.

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Definitions:

Connective Tissue

Tissue that supports, binds together, and protects organs. It includes various types, such as bone, cartilage, fat, blood, and lymphatic tissue.

Astrocytes

Star-shaped glial cells in the brain and spinal cord, involved in physical support and maintenance of the blood-brain barrier.

Blood-Brain Barrier

A selective barrier that prevents certain substances from entering the brain from the blood.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, such as heart rate and digestion.